Ron Powell, employed by Oakridge Sand & Gravel (Commission decision, May 14, 2009)

Plain-English summary

MSHA assessed Ron Powell personally under section 110(c). While the parties negotiated a settlement, confusion arose over which penalties the agreement covered, and Powell's penalties were not contested on time. The Secretary supported reopening so the settlement could be approved. The Commission reopened the assessment and remanded for the Chief ALJ to rule on the attached settlement motion.

Decision snapshot

• Governing provisions: 29 C.F.R. §§ 2700.26 and 2700.27; 30 U.S.C. §§ 815(a) and 820(c)
• Outcome: The personal penalty assessment was reopened and remanded for settlement review.
• Key point: Confusion about which penalties a negotiated settlement covers can support reopening when both sides seek approval of the agreement.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

601 NEW JERSEY AVENUE, NW

SUITE 9500

WASHINGTON, DC 20001

May 14, 2009

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

RON POWELL, employed by
OAKRIDGE SAND & GRAVEL

:

:

:

:

:

:

:

:

Docket No. WEST 2009-344-M
A.C. No. 35-00524-156092 A

BEFORE: Duffy, Chairman; Jordan, Young, and Cohen, Commissioners

ORDER

BY THE COMMISSION:

This matter arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.
§ 801 et seq. (2006) (“Mine Act”). On January 7, 2009, the Commission received from Ron Powell a request to reopen a penalty assessment against Powell under section 110(c) of the Mine Act, 30 U.S.C. § 820(c), that had become a final order of the Commission pursuant to section 105(a) of the Mine Act, 30 U.S.C. § 815(a).

Under the Commission’s Procedural Rules, an individual charged under section 110(c) has 30 days following receipt of the proposed penalty assessment within which to notify the Secretary of Labor that he or she wishes to contest the penalty. 29 C.F.R. § 2700.26. If the individual fails to notify the Secretary, the proposed penalty assessment is deemed a final order of the Commission. 29 C.F.R. § 2700.27.

We have held, however, that in appropriate circumstances, we possess jurisdiction to reopen uncontested assessments that have become final Commission orders. Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). In evaluating requests to reopen final section 105(a) orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure under which, for example, a party could be entitled to relief from a final order of the Commission on the basis of mistake, inadvertence, or excusable neglect. See 29 C.F.R.
§ 2700.1(b) (“the Commission and its Judges shall be guided so far as practicable by the Federal Rules of Civil Procedure”); JWR, 15 FMSHRC at 787. We have also observed that default is a harsh remedy and that, if the defaulting party can make a showing of good cause for a failure to timely respond, the case may be reopened and appropriate proceedings on the merits permitted. See Coal Prep. Servs., Inc., 17 FMSHRC 1529, 1530 (Sept. 1995).

The Secretary supports reopening of the proposed penalty assessment in order that the parties’ agreement to settle the penalty assessment can be approved. The record indicates that there had been confusion as to which penalties were included in the settlement being negotiated among the parties and, as a result, the penalties involving Mr. Powell were not timely contested.

Having reviewed Mr. Powell’s request and the Secretary’s response, we grant reopening and hereby remand this matter to the Chief Administrative Law Judge for a ruling on the motion for approval of the settlement attached to the Secretary’s response.

Michael F. Duffy, Chairman

Mary Lu Jordan, Commissioner

Michael G. Young, Commissioner

Robert F. Cohen, Jr., Commissioner

Distribution:

Hafez Daraee, Esq.

Jordan, Schrader, Ramis, P.C.

P. O. Box 230669

Portland, OR 97281

Jeannie Gorman, Esq.

Office of the Solicitor

U.S. Department of Labor

1111 Third Avenue, Suite 945

Seattle, WA 98101-3212

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Myra James, Chief

Office of Civil Penalty Compliance

MSHA

U.S. Dept. of Labor

1100 Wilson Blvd., 25th Floor

Arlington, VA 22209-3939

Chief Administrative Law Judge Robert J. Lesnick

Federal Mine Safety & Health Review Commission

601 New Jersey Avenue, N.W., Suite 9500

Washington, D.C. 20001-2021